1099 Accounts
As part of the company and vendor setup for 1099 processing, it is important to remember that throughout the year, as checks are posted, transactions should be marked as 1099 transactions based on 1099 information recorded on individual vendor invoices.
To set up an account for 1099 processing, follow the steps below:
- Go to Maintenance > new world ERP Suite > Chart of Accounts > Accounts.
- On the Account List page, in the Type drop-down list, select Expense.
- Click Search. The list of expense accounts displays.
- Click the Account Number hyperlink of an expense account that will be subject to 1099’s.
- Select the Subject to 1099 check box.
Note: If this account does not have the Subject to 1099 check box selected and a purchase order or accounts payable invoice is entered using the account, the following message appears: “A 1099 transaction will be generated for this invoice item when it is paid despite the fact that a non ‘Subject to 1099’ account is part of the general ledger distribution defined for the invoice item.” You can proceed by clicking on the Accept hyperlink that accompanies the message.
- Click Save.